Loan Calculator — EMI, Interest & Amortization

Calculate the monthly EMI, total interest, and full amortization schedule for any fixed-rate loan. Model extra payments, view a principal-vs-interest chart, and download the full report as a PDF. Works for home, car, personal, and student loans.

Advertisement

How to use

  1. Step 1: Enter the loan amount (principal)
  2. Step 2: Enter the annual interest rate (%)
  3. Step 3: Enter the tenure in years or months
  4. Step 4: Optionally add extra monthly payment
  5. Step 5: Review EMI, total interest, schedule, and chart
  6. Step 6: Click 'Download PDF' to save the report

How EMI works (with formula)

The Equated Monthly Installment (EMI) formula is:

EMI = [P × r × (1+r)^n] / [(1+r)^n − 1]

Where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments.

Each EMI splits into two parts: interest on the outstanding balance, and principal repayment that reduces that balance. Early in the loan, most of the EMI is interest because the balance is large; near the end, most goes to principal. The amortization schedule shows this split month by month.

Extra payments are applied 100% to principal, immediately reducing all future interest. Even a single extra EMI per year typically shortens a 30-year mortgage by 4-6 years.

Advertisement

Examples

Example 1 — 30-year home loan
Principal$300,000
Rate6.5% / year
Tenure30 years (360 months)
Monthly EMI$1,896.20
Total interest$382,633
Total payment$682,633
Example 2 — 5-year car loan
Principal$25,000
Rate7.0% / year
Tenure60 months
Monthly EMI$495.03
Total interest$4,702
Total payment$29,702
Example 3 — Personal loan with extra payment
Principal$10,000
Rate11.5% / year
Tenure36 months
Extra / month$100
Payoff29 months (vs 36)
Interest saved~$365

Frequently asked questions

A loan calculator is a financial tool that estimates the monthly payment (EMI), total interest paid, and amortization schedule of a fixed-rate loan based on the principal amount, annual interest rate, and tenure. It lets you compare loan offers before signing.

Loan types this calculator handles

  • Home loans / mortgages — typically 15-30 years at 5-8%. Use the principal-and-interest portion only; for a full PITI estimate add property tax, insurance, and HOA separately.
  • Car loans — usually 36-72 months at 4-9%. Shorter tenures save substantial interest.
  • Personal loans — typically 12-60 months at 8-25% depending on credit. Check for prepayment penalties.
  • Student loans — federal loans in the US use a daily-interest calculation that closely tracks EMI; this calculator's monthly result is within rounding error.
  • Business / equipment loans — usually 24-60 months at 6-15% with monthly EMI structure.

The power of extra payments

On a $300,000 mortgage at 6.5% for 30 years, here's how different extra-payment strategies change the outcome:

StrategyPayoffTotal interestSaved
No extra30 yr 0 mo$382,633$0
+$100 / month26 yr 8 mo$324,418$58,215
+$200 / month24 yr 1 mo$282,919$99,714
+1 EMI / year (~$158/mo)25 yr 5 mo$303,156$79,477

Common mistakes & tips

  • Comparing only EMI, not total interest. A longer tenure has lower EMI but much more total interest paid.
  • Ignoring processing fees and insurance. Add them to the upfront cost when comparing offers.
  • Confusing APR with nominal rate. APR includes fees; nominal rate doesn't. Always compare APR.
  • Not checking prepayment penalties. Some lenders charge 1-3% for early payoff. Read the fine print.
  • Underestimating impact of small extras. $50-100 extra per month can save tens of thousands over 30 years.

⚠️ Estimates only. Actual loan terms, fees, and amortization may differ. Not financial advice.